In a bid to expand market reach, the world?s largest manufacturers of bicycles ? Hero Cycles is all set to foray into organised retail. With an entry into this format, the company is looking at making a presence by not just opening over 350-500 shop-in-shop exclusive retail outlets but it has also inked a tie-up with Future group and Lodhi Sports to sell its cycles.
Talking to FE, Pankaj Munjal, managing director of Hero Cycles said, ?to maximise the reach and distribution network for high-end products, Hero is planning to open shop in shop, around 350-400 within two years. For this, high-end product retailing Hero is going to pick select dealer points. One of the primary criteria the potential shop in shop is the retail attitude of potential party. Lodhi Sports is one of the shop-in-shop point being opened in Delhi.? Elaborating about the viability of the foray, Munjal said ?there is a huge growth and potential in this market. We also expect better margins soon our retail plans roll out at full pace in the coming two years.?
Munjal further added that as of now large format reatil stores like Planet Sports and Central (which are owned by Future group) will be selling Hero cycles, whereas, later on the presence will exceed to Pantaloons and Brand Factory and Sports Warehouse across all metros and tier one cities. ?Currently, our tie-up is with Pantaloon Retail India (PRIL) under which our premium products will be sold at Future Group’s different stores. We will be selling our premium and high-end bicycles at PRIL’s Planet Sports outlets along with other shop-in-shop formats within other retail points of the Future Group such as Central, Pantaloons, Brand Factory and Sports Warehouse will be a part of it,? he said.
According to the group the tie-up is aligned with Hero Cycle’s strategy to address the premium bicycle market, while continuing to be the market leader in the mass segment through its established brand loyalty.
However, Munjal clarified that as of now the company has no plans and would not like to comment on forward looking statements.